B.C., Alberta lead country in savviest and richest investors

The old directional adage "Go West young man" seems to be truer today than ever and is no longer restricted just to men. A couple of recent BMO Bank of Montreal studies show that British Columbia and Alberta are home to some of the savviest and highest net worth investors in the country.

British Columbia got the highest score in the national bi-annual BMO Nesbitt Burns savviest investor index, narrowly edging out Alberta which came in second, followed by the Prairies, Ontario, Quebec and then Atlantic Canada.

The index measures Canadian investors' attitude and actions in a number of areas including whether they have a financial plan, awareness of their investment profile, the amount of attention they pay to market trends and their general knowledge about investments and how various factors can impact their portfolios.

British Columbians led the country in a number of key categories including having a financial plan, knowledge of investment products and understanding how various factors can impact their portfolios.

Generally the study found that the majority of Canadian investors are confident they are managing their investments well. However, it also found that one third don't what specific investments they hold in their products, half have a written financial plan but only a third have updated it in the last year, and just over half know their investment profile, which identifies financial goals and risk tolerance.

"While it's encouraging that Canadians are optimistic about their ability to manage their investments, it's concerning that such a significant number don't have a written financial plan and are unclear about what investments they hold," says Bill Brown, senior vice president and managing director, national sales manager of BMO Nesbitt Burns. "The key to achieving your long-term financial goals is creating a financial plan that starts today."

Then a study by BMO Harris Private Banking found there has been tremendous growth in the number of high net worth individuals --- those with investible assets of $1 million or more -- in B.C. and the number of high net worth women in Alberta.

"There has been tremendous growth in B.C. in recent years and the province's Asian community has played an integral part in helping that growth and development of the province," says Jennifer Muench, vice president and managing director of BMO Harris Private Banking British Columbia. "This study reinforces the fact that British Columbia provides Canadians, regardless of where they come from or their race, with the opportunity to work hard and prosper."

Seventy-four per cent of B.C.'s high net worth individuals say they are self-made millionaires, 69 per cent are new Canadians and 26 per cent are women.

Women also were well represented among Alberta's affluent population accounting for 36 per cent of the province's wealthy.

Mary Ellen Neilson, vice president and managing director, Prairies, with BMO Harris Private Banking, says it shouldn't come as a huge surprise that Albertan women make up such a significant number of the province's affluent population.

"After all, across North America the wealth controlled by women is increasing by eight per cent annually," Neilson says. "We're also seeing more women playing a larger role in their family's finances, with many taking on the role of household Chief Financial Officer. 

And there are differences between men and women when managing their money. Our research has found that women put a premium on clear, honest and relevant communication regarding product and service offerings."

The savviest investor index also found that Canadian investors are most knowledgeable about GICs and mutual funds and least knowledgeable about Exchange Traded Funds. Most understand how their investments are impacted by interest rates, currency rates and credit ratings but they are least knowledgeable about how stock market fluctuations and corporate earnings impact their investments.

Among investors seniors are most likely to know about what specific investment they hold.

Talbot Boggs is a Toronto-based business communications professional who has worked with national news organizations, magazines and corporations in the finance, retail, manufacturing and other industrial sectors.

The old directional adage "Go West young man" seems to be truer today than ever and is no longer restricted just to men. A couple of recent BMO Bank of Montreal studies show that British Columbia and Alberta are home to some of the savviest and highest net worth investors in the country.

British Columbia got the highest score in the national bi-annual BMO Nesbitt Burns savviest investor index, narrowly edging out Alberta which came in second, followed by the Prairies, Ontario, Quebec and then Atlantic Canada.

The index measures Canadian investors' attitude and actions in a number of areas including whether they have a financial plan, awareness of their investment profile, the amount of attention they pay to market trends and their general knowledge about investments and how various factors can impact their portfolios.

British Columbians led the country in a number of key categories including having a financial plan, knowledge of investment products and understanding how various factors can impact their portfolios.

Generally the study found that the majority of Canadian investors are confident they are managing their investments well. However, it also found that one third don't what specific investments they hold in their products, half have a written financial plan but only a third have updated it in the last year, and just over half know their investment profile, which identifies financial goals and risk tolerance.

"While it's encouraging that Canadians are optimistic about their ability to manage their investments, it's concerning that such a significant number don't have a written financial plan and are unclear about what investments they hold," says Bill Brown, senior vice president and managing director, national sales manager of BMO Nesbitt Burns. "The key to achieving your long-term financial goals is creating a financial plan that starts today."

Then a study by BMO Harris Private Banking found there has been tremendous growth in the number of high net worth individuals --- those with investible assets of $1 million or more -- in B.C. and the number of high net worth women in Alberta.

"There has been tremendous growth in B.C. in recent years and the province's Asian community has played an integral part in helping that growth and development of the province," says Jennifer Muench, vice president and managing director of BMO Harris Private Banking British Columbia. "This study reinforces the fact that British Columbia provides Canadians, regardless of where they come from or their race, with the opportunity to work hard and prosper."

Seventy-four per cent of B.C.'s high net worth individuals say they are self-made millionaires, 69 per cent are new Canadians and 26 per cent are women.

Women also were well represented among Alberta's affluent population accounting for 36 per cent of the province's wealthy.

Mary Ellen Neilson, vice president and managing director, Prairies, with BMO Harris Private Banking, says it shouldn't come as a huge surprise that Albertan women make up such a significant number of the province's affluent population.

"After all, across North America the wealth controlled by women is increasing by eight per cent annually," Neilson says. "We're also seeing more women playing a larger role in their family's finances, with many taking on the role of household Chief Financial Officer. And there are differences between men and women when managing their money. Our research has found that women put a premium on clear, honest and relevant communication regarding product and service offerings."

The savviest investor index also found that Canadian investors are most knowledgeable about GICs and mutual funds and least knowledgeable about Exchange Traded Funds. Most understand how their investments are impacted by interest rates, currency rates and credit ratings but they are least knowledgeable about how stock market fluctuations and corporate earnings impact their investments.

Among investors seniors are most likely to know about what specific investment they hold.

Talbot Boggs is a Toronto-based business communications professional who has worked with national news organizations, magazines and corporations in the finance, retail, manufacturing and other industrial sectors.

CANADIAN PRESS